Bengaluru, July 02: wara Baby, India’s largest contract manufacturer by value in FY25 of disposable hygiene products including baby diapers, adult diapers and sanitary napkins, has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).
The IPO comprises of a fresh issue of equity shares of face value ₹ 2 each aggregating up to ₹500 Crores and an offer for sale of equity shares of face value ₹ 2 each aggregating up to ₹500 Crores. The offer for sale by promoter selling shareholder comprises of equity shares of face value of ₹2 each aggregating up to ₹300 Crores by Brainbees Solutions Limited and equity shares of face value of ₹2 each aggregating up to ₹ 200 Crores by Anadya Bon Merchari LLP.
The Company proposes to utilise the net proceeds from the offer towards financing capital expenditure for setting up a new manufacturing facility in Madhya Pradesh, India amounting to Rs 198.2 Crores; repayment or prepayment, in full or in part, of certain borrowings availed by the Company amounting to Rs 100 Crores; investment in its subsidiaries, Solis Hygiene, Swara Hygiene, KAEHPL for repayment or prepayment of certain outstanding borrowings availed by them amounting to Rs 27.5 Crores; and for pursuing inorganic growth through unidentified acquisitions, along with general corporate purposes. In consultation with the BRLMs, the company may consider a pre-IPO placement of ₹100 Crores.
Swara Baby commenced operations in 2018, manufacturing baby diapers. It is a specialized, independent manufacturer of disposable consumer hygiene products, across the baby care, adult incontinence and feminine hygiene product categories, with a focus on research and development and quality control. Their diversified product portfolio includes baby pant-style diapers, baby tape-style diapers, adult pant-style diapers, adult tape-style diapers, sanitary napkins and panty liners. They basically contract manufacture products for their customers for sale to their end consumers.
The Company has established long-standing relationships with Corporate Promoter, Brainbees Solutions; and other Indian and multinational customers including Piramal Pharma Limited and Himalaya Wellness Company, in the hygiene products segment. In addition, the Company manufactures, markets and sells its own brands including baby diapers under the Cuddles brand and adult diapers under the Shield brand, directly to end consumers through online commerce channels and modern trade channels. The Company acquired K.A. Enterprises Hygiene Private Limited (KAEHPL), a manufacturer of feminine hygiene products, on December 22, 2025.
According to the DRHP, the company is India’s largest hygiene contract manufacturer by value in FY25, covering baby diapers, adult diapers and sanitary napkins. It also leads the baby diaper contract manufacturing segment with a 37% market share by value in FY25 and delivered 21.9% YoY growth in FY26. The company also leads the largest adult diapers contract manufacturing segment, it held an estimated 36% market share by value in FY25 and grew 24.9% YoY in FY26.
The company operates four manufacturing facilities across 24 acres in Pithampur and Indore, Madhya Pradesh, supported by warehouses across India. Since 2018, it has scaled from one manufacturing line to 20 lines, comprising 12 for baby diapers, four for adult incontinence and period panties, and four for sanitary napkins and panty liners. Its annual capacity stands at approximately 2,660 million baby diapers, 253 million adult diapers/period panties, and 756 million sanitary napkins/panty liners. It also has an in-house R&D function with a 13-member team focused on new product development, product enhancement and sustainability, including the development of plant-based “Tree Free” diapers and ultra-thin sanitary napkins, with a patent application for the “Tree Free” diaper currently under review.
In Fiscal 2026, the company reported revenue from operations of ₹1163.9 Crores up from ₹942.97 Crores in Fiscal 2025 and ₹749.96 Crores in Fiscal 2024. Profit for the year stood at ₹95.58 Crores in Fiscal 2026, compared with ₹80.67 Crores in Fiscal 2025 and ₹93.97 Crores in Fiscal 2024. EBITDA stood at ₹192.77 Crores in Fiscal 2026, compared with ₹162.719 Crores in Fiscal 2025 and ₹153.58 Crores in Fiscal 2024. In Fiscal 2026, baby diapers contributed the largest share of product sales at ₹911.81 Crores, accounting for 79.06% of total sales. Adult incontinence diapers generated ₹185.35 Crores, representing 16.07%, while feminine hygiene products contributed ₹31.35 Crores, or 2.72%. Together, these three core product categories accounted for ₹1128.52 Crores, representing 97.85% of total product sales. In Fiscal 2026, revenue from the sale of Cuddles products stood at ₹204.184 Crores, accounting for 22.39% of the company’s total revenue from baby diapers. Revenue from the sale of Shields products was ₹38.45 Crores, representing 20.74% of total revenue from adult diapers.
According to the TKC Report, baby diapers and feminine hygiene products dominated India’s hygiene market in Fiscal 2025, accounting for 52.1% and 40.1% share, respectively. Adult incontinence products contributed 6.3%, while wet wipes accounted for 1.5%. The overall hygiene market is projected to grow at a CAGR of 12.7% across key product categories, supported by long-term consumption trends. Swara Baby’s track record, domain experience and market position, paired with the integrated facilities, position them to benefit from growth of the disposable hygiene industry in India.
JM Financial Limited and Avendus Capital Private Limited are the bankers to the issue.